403(b) Plan Vendor Transparency
House Bill 2820, passed by the 86th Session of the Texas legislature, removed the Teacher Retirement System (TRS) oversight of eligible qualified 403(b) investment products.
Under Texas law and the provisions of the Vernon Statute, public schools are required to allow employees to :
- Invest with companies licensed by the Texas Department of Insurance;
- Meet minimum capital and surplus requirements; and,
- Have experience providing qualified investment products.
With the elimination of the TRS oversight, districts no longer have a place to direct employees for information regarding a 403(b) retirement savings account.
TASBO, with more than 7,300 members and 1,100 member districts, is THE trusted resource for school finance and operations. As such, we have embarked upon a transparency project for 403(b) vendors to voluntarily participate in a program that will provide basic information about 403(b) retirement savings providers and investment products that are available to employees of Texas public schools.
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